This bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that provides a subtraction for day care costs paid by taxpayers. Specifically, it defines "day care costs" as the amount paid to a licensed child care program during the taxable year and clarifies that a "licensed child care program" includes child care centers and family or group family child care licensed under chapter 142B. The subtraction is limited to the amount paid in excess of any dependent care assistance that the taxpayer has excluded from gross income under section 129 of the Internal Revenue Code.

The new provision is set to take effect for taxable years beginning after December 31, 2024. This change aims to provide financial relief to taxpayers by allowing them to subtract certain day care expenses from their taxable income, thereby potentially reducing their overall tax liability.

Statutes affected:
Introduction: 290.0132